iPhone In January?

Apple Computer
is readying two cellphone models that could launch at the companys January 2007 MacWorld conference, according to a report by Prudential Equity Group analyst Jesse Tortora.

Tortora, who did not identify his sources, said recent checks give him reason to believe Apple
will begin selling a smartphone and a slim music phone. One of the phones will include wireless connectivity, but both phones will be manufactured first in small numbers, he said.

Threats to the success of an iPhone from Apple include potential short battery-life problems as well as competition from Microsoft's
Zune line of products.

Tortora did not speculate what type of business model Apple would employ to sell the phones (see: "What Would An iPhone Look Like?"), but rumor sites have guessed that the company would work with wireless carrier Cingular.

Deutsche Telekom's
T-Mobile is also considered a likely partner after Chief Executive Robert Dotson said during a press conference Oct. 6 that Apples operating system represents the future of next-generation wireless networks.